Mr Trump held an astonishing press conference at Trump Tower, in which he essentially backtracked on his scripted statement, delivered on Monday, condemning white supremacists. On Tuesday afternoon he reverted to saying that both sides were to blame, seeming to dismiss the revulsion most Americans feel for the neo-Nazi demonstrators.

After the press conference Richard Trumka, president of the largest federation of labour unions in the US, the AFL-CIO, announced he was resigning from the manufacturing council. His deputy, Thea Lee, also resigned.

"We cannot sit on a council for a president who tolerates bigotry and domestic terrorism," they said in a statement.

"President Trump's remarks today repudiate his forced remarks yesterday about the KKK and neo-Nazis. We must resign on behalf of America's working people, who reject all notions of legitimacy of these bigoted groups."

Earlier in the day, Scott Paul, president of the Alliance for American Manufacturing, announced his own resignation.

He was preceded by the heads of computer giant Intel, sports clothing company Under Armour and Merck, one of the world’s largest pharmaceutical companies, who all stepped down in protest on Monday.

The former CEO of Uber, Travis Kalanick, resigned in February after coming under pressure from employees and customers over Mr Trump’s travel ban.

On Tuesday the chief executive of Walmart, America's largest private employer with 1.5 million staff, issued a strong rebuke of Mr Trump’s response.

In an email to staff, which was published on Walmart's website, Doug McMillon said the president “missed a critical opportunity to help bring our country together.”

“As we watched the events and the response from President Trump over the weekend, we too felt that he missed a critical opportunity to help bring our country together by unequivocally rejecting the appalling actions of white supremacists,” he wrote.

But he stopped short of resigning from the presidential advisory council on economic development, on which he sits.

Mr Trump responded in defiant fashion, tweeting: "For every CEO that drops out of the Manufacturing Council, I have many to take their place. Grandstanders should not have gone on. JOBS!"

For every CEO that drops out of the Manufacturing Council, I have many to take their place. Grandstanders should not have gone on. JOBS!

Mr Trump was asked on Tuesday afternoon why so many business leaders were abandoning him.

He attempted to portray them as being embarrassed at having business overseas.

"Because they're not taking their job seriously as it pertains to this country," he said.

"We want jobs, manufacturing in this country. If you look at some of those people that you're talking about, they're outside of the country. They're having a lot of their product made outside.

"If you look at Merck, as an example, take a look where their product is made. It's made outside of our country. We want products made in the country.

"Now, I have to tell you, some of the folks that will leave, they're leaving out of embarrassment because they make they're products outside. And I've been lecturing them, including the gentleman that you're referring to, about you have to bring it back to this country."

But the exit of so many high profile and well-respected business leaders is severely damaging to a president who has prided himself on being a businessman, and a corporate champion.

Mr Trump arrived at Trump Tower on Monday night, and was supposed to be working on plans for revamping America’s ageing infrastructure.

It was his first visit home since his January inauguration, but the president was greeted by thousands of protesters lining the streets of Manhattan, yelling: “New York hates Trump.”

A giant inflatable rat in New York, to welcome the president on his first trip back to the city since his inauguration

The president is reported to have been weighing the dismissal of his controversial right-hand man for months, and has not met face-to-face with him for more than a week. They have, however, communicated by telephone.

Mr Bannon has cautioned the president previously not to criticise far-Right activists too strongly, for fear of alienating his base.

Mr Trump said on Tuesday afternoon that he did not consult Mr Bannon before issuing his ill-advised statement on Saturday.